Kampala — Uganda’s financial sector is quietly entering a new phase of sophistication, with the launch of Centenary Bank’s custodial services drawing strong endorsement from the Bank of Uganda, signaling a deeper push toward modern capital markets infrastructure.
Speaking as guest of honour at the launch of CenteCustody, Bank of Uganda Governor Dr. Michael Atingi-Ego commended Centenary Bank for what he described as a “bold and visionary step” into institutional custody services — a segment critical to investor confidence, pension fund management, and securities trading.
Centenary Bank, one of Uganda’s largest commercial banks, currently holds assets valued at UGX 8.6 trillion, manages a loan portfolio of about UGX 4.1 trillion, maintains a non-performing loan ratio of 2.8%, and serves approximately 3.4 million customers, representing roughly a quarter of Uganda’s banking population.
Custodial services, while less visible to ordinary depositors, are central to financial market stability. They involve the safekeeping of financial assets such as shares, bonds, and pension investments on behalf of institutional and individual investors. Beyond storage, custodians handle settlement of transactions, collection of dividends and interest, and execution of corporate actions such as rights issues and bonus shares.
In practical terms, this reduces risk of fraud, improves transparency, and strengthens trust in financial markets — all essential ingredients for attracting long-term investment.
Analysts say the entry of a major retail bank into custody services reflects Uganda’s gradual shift toward deepening capital markets, where savings are increasingly channelled into productive investments rather than idle deposits.
For Uganda, where pension funds and institutional investors are growing but still face infrastructure gaps, such developments could mark a turning point in mobilising domestic capital for national development.
The launch, attended by senior banking and regulatory figures, underscores a broader ambition: transforming Uganda’s financial system from a basic lending economy into a more diversified, investment-driven ecosystem.
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